Earnings Preview: Capital One

| About: Capital One (COF)

Capital One (NYSE:COF) is expected to report Q1 earnings after the market close on Thursday, April 19, with a conference call scheduled for 5:00 pm ET.


The consensus estimate is $1.39 for EPS and $4.37B for revenue, according to First Call.

Analyst Views

In a note to investors on April 18, Stifel Nicolaus wrote that it expects Capital One's Q1 results to reflect high margins, strong profitability, and significant loan growth. Stifel believes that the company's visibility will remain poor during 1H12. However, the firm predicts that Capital One's multiple could increase significantly, and it raised its target price on the stock to $71 from $60 while maintaining a Buy rating. American Express's (NYSE:AXP) stronger than expected Q1 results, and generally stronger credit metrics at the large banks that have already reported Q1 results, should also encourage Capital One inventors. Capital One reported that its own credit metrics in March were little changed, as its U.S. delinquency rate decreased to 3.25% from 3.62% but its charge-off rate inched up to 3.85% from 3.84%.